Founding Naked Raygun member John Haggerty left the band around 1990 due to the their inactivity. He recruited his brother Joe to play drums, and along with former Bhopal Stiffs members Larry Damore and Steve Saylors, Pegboy was formed. They debuted the same year with an EP, and followed up with a full-length a year later. The band released three full lengths of genre defining melodic post-hardcore before mostly disbanding in 2000. Notably, the EP Fore featured Steve Albini on bass.

Though pretty much inactive, Pegboy do get together once a week to "practice," as well to play the occasional show in Chicago.